Podcasts: A Lesson in Bitcoin Volatility with Dan McArdle 🔗 2 years ago

“Picking the highs and lows is an impossible game, so I think the best advice for people is: know what you own and why you own it.”
— Dan McArdle

Dan McArdle is co-founder of Messari Crypto and creator of casebitcoin.com. Dan has been in Bitcoin since 2011. In this interview, we discuss the history of Bitcoin cycles and events: Mt. Gox hack, rise of altcoins and stablecoins, Ethereum DAO Hack, and 2017 Bitcoin cycle.

- - - -

Bitcoin is volatile: its history has been dominated by large swings in both directions; albeit, Bitcoin is volatile to the upside: in 10 years it is up well over 500,000%! But, in each cycle, new adopters can be forgiven for thinking they’re in the cycle that finally breaks the pattern. It is easy to question the investment when seeing the value drop by 80% for the first time.

This is where experience is vital. Each cycle has seen events that have had the potential to destroy Bitcoin. Exchange hacks and exploits, the proliferation of competing coins with marketing buzz aimed at attacking Bitcoin, the realisation of altcoin failings, scams, bans, FUD. The most recent has been the UST and Luna crash. Each one destroys confidence and value.

Yet, the one thing the critiques fail to mention is that each of these events has been external to Bitcoin. Each event has highlighted weaknesses in innovations in the ecosystem that has developed around Bitcoin. But Bitcoin has remained secure - the protocol itself has not been hacked. In fact, the “move slow and build things” ethos has strengthened through each event.

This is why long term hodlers who have served one “tour of duty” (a four year Bitcoin cycle) are more inured to Bitcoin’s volatility. They have experienced Bitcoin being declared dead, only to reemerge stronger and more resilient. What hurts you can make you stronger.

To look forward and speculate about the future it is therefore important to look back and see where we’ve been. Many believe Bitcoin is a paradigm shift not just because of ideology, but because the technology has been repeatedly tested and passed. That’s why it is being considered as an emerging global macro asset.

This episode’s sponsors:
Gemini - Buy Bitcoin instantly
BlockFi - The future of Bitcoin financial services
Bitcasino - The Future of Gaming is here
Casa - The leading provider of Bitcoin multisig key security.
Ledger- State of the art Bitcoin hardware wallet
Compass Mining - Bitcoin mining & hosting
Cake Wallet - Open-source privacy focused Bitcoin wallet
BCB Group - Global digital financial Services

-----

WBD510 - Show Notes

-----

If you enjoy The What Bitcoin Did Podcast you can help support the show by doing the following:

Become a Patronand get access to shows early or help contribute

Make a tip:
Bitcoin: 3FiC6w7eb3dkcaNHMAnj39ANTAkv8Ufi2S
QR Codes: Bitcoin
If you do send a tip then please email me so that I can say thank you

Subscribe on iTunes | Spotify | Stitcher | SoundCloud | YouTube | Deezer| TuneIn | RSS Feed

Leave a review on iTunes

Share the show and episodes with your friends and family

Subscribe to the newsletter on my website

Follow me on Twitter Personal | Twitter Podcast | Instagram | Medium|YouTube

If you are interested in sponsoring the show, you can read more about that here or please feel free to drop me an email to discuss options.